TRADEWEB MARKETS INC-CLASS A (TW) Stock Fundamental Analysis
NASDAQ:TW - Nasdaq - US8926721064 - Common Stock - Currency: USD
TW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 227 industry peers in the Capital Markets industry. TW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TW is valued quite expensive, but it does show an excellent growth. This makes TW very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year TW was profitable.
TW had a positive operating cash flow in the past year.
Each year in the past 5 years TW has been profitable.
Each year in the past 5 years TW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TW (6.89%) is better than 82.82% of its industry peers.
The Return On Equity of TW (8.64%) is comparable to the rest of the industry.
TW's Return On Invested Capital of 7.58% is amongst the best of the industry. TW outperforms 80.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TW is in line with the industry average of 7.06%.
The 3 year average ROIC (6.25%) for TW is below the current ROIC(7.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 8.64% | ||
| ROIC | 7.58% |
ROA(3y)5.66%
ROA(5y)4.74%
ROE(3y)7.22%
ROE(5y)6.08%
ROIC(3y)6.25%
ROIC(5y)5.43%
1.3 Margins
TW has a Profit Margin of 29.03%. This is in the better half of the industry: TW outperforms 69.16% of its industry peers.
TW's Profit Margin has improved in the last couple of years.
TW has a better Operating Margin (39.55%) than 69.60% of its industry peers.
In the last couple of years the Operating Margin of TW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.55% | ||
| PM (TTM) | 29.03% | ||
| GM | N/A |
OM growth 3Y5.86%
OM growth 5Y10.07%
PM growth 3Y11.28%
PM growth 5Y21.86%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for TW has been increased compared to 1 year ago.
TW has more shares outstanding than it did 5 years ago.
TW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TW has an Altman-Z score of 12.67. This indicates that TW is financially healthy and has little risk of bankruptcy at the moment.
TW has a Altman-Z score of 12.67. This is amongst the best in the industry. TW outperforms 95.15% of its industry peers.
TW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.67 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
TW has a Current Ratio of 3.99. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
TW has a Current ratio of 3.99. This is amongst the best in the industry. TW outperforms 84.14% of its industry peers.
TW has a Quick Ratio of 3.99. This indicates that TW is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TW (3.99) is better than 84.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.99 |
3. Growth
3.1 Past
TW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.78%, which is quite impressive.
The Earnings Per Share has been growing by 23.66% on average over the past years. This is a very strong growth
The Revenue has grown by 28.98% in the past year. This is a very strong growth!
TW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.35% yearly.
EPS 1Y (TTM)29.78%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%18.75%
Revenue 1Y (TTM)28.98%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%25.23%
3.2 Future
The Earnings Per Share is expected to grow by 15.79% on average over the next years. This is quite good.
Based on estimates for the next years, TW will show a quite strong growth in Revenue. The Revenue will grow by 10.69% on average per year.
EPS Next Y19.69%
EPS Next 2Y16.12%
EPS Next 3Y14.3%
EPS Next 5Y15.79%
Revenue Next Year18.35%
Revenue Next 2Y14.72%
Revenue Next 3Y13.23%
Revenue Next 5Y10.69%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
TW is valuated quite expensively with a Price/Earnings ratio of 46.02.
Based on the Price/Earnings ratio, TW is valued a bit more expensive than 76.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. TW is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 38.45, which means the current valuation is very expensive for TW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TW indicates a slightly more expensive valuation: TW is more expensive than 73.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. TW is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.02 | ||
| Fwd PE | 38.45 |
4.2 Price Multiples
TW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TW is cheaper than 64.32% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.45 | ||
| EV/EBITDA | 30.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TW does not grow enough to justify the current Price/Earnings ratio.
TW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TW's earnings are expected to grow with 14.30% in the coming years.
PEG (NY)2.34
PEG (5Y)1.95
EPS Next 2Y16.12%
EPS Next 3Y14.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, TW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.84, TW is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.57, TW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
On average, the dividend of TW grows each year by 10.06%, which is quite nice.
TW has been paying a dividend for at least 10 years, so it has a reliable track record.
As TW did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.06%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
TW pays out 17.01% of its income as dividend. This is a sustainable payout ratio.
TW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.01%
EPS Next 2Y16.12%
EPS Next 3Y14.3%
134.38
-0.14 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners98.85%
Inst Owner Change0.04%
Ins Owners0.07%
Ins Owner Change-0.44%
Market Cap28.67B
Analysts81.74
Price Target151.9 (13.04%)
Short Float %1.69%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.36
Dividend Growth(5Y)10.06%
DP17.01%
Div Incr Years2
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.4%
Min EPS beat(2)-4.05%
Max EPS beat(2)-0.75%
EPS beat(4)0
Avg EPS beat(4)-2.22%
Min EPS beat(4)-4.05%
Max EPS beat(4)-0.75%
EPS beat(8)1
Avg EPS beat(8)-2.04%
EPS beat(12)3
Avg EPS beat(12)-1.39%
EPS beat(16)3
Avg EPS beat(16)-1.7%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)-2.67%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)-2.67%
Revenue beat(8)0
Avg Revenue beat(8)-3.04%
Revenue beat(12)0
Avg Revenue beat(12)-3.01%
Revenue beat(16)0
Avg Revenue beat(16)-2.84%
PT rev (1m)0.36%
PT rev (3m)-0.2%
EPS NQ rev (1m)1.68%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)2.05%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.02 | ||
| Fwd PE | 38.45 | ||
| P/S | 16.61 | ||
| P/FCF | 35.45 | ||
| P/OCF | 31.94 | ||
| P/B | 4.94 | ||
| P/tB | 26.74 | ||
| EV/EBITDA | 30.22 |
EPS(TTM)2.92
EY2.17%
EPS(NY)3.5
Fwd EY2.6%
FCF(TTM)3.79
FCFY2.82%
OCF(TTM)4.21
OCFY3.13%
SpS8.09
BVpS27.18
TBVpS5.03
PEG (NY)2.34
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.89% | ||
| ROE | 8.64% | ||
| ROCE | 9.97% | ||
| ROIC | 7.58% | ||
| ROICexc | 9.52% | ||
| ROICexgc | 84.36% | ||
| OM | 39.55% | ||
| PM (TTM) | 29.03% | ||
| GM | N/A | ||
| FCFM | 46.87% |
ROA(3y)5.66%
ROA(5y)4.74%
ROE(3y)7.22%
ROE(5y)6.08%
ROIC(3y)6.25%
ROIC(5y)5.43%
ROICexc(3y)8.1%
ROICexc(5y)6.86%
ROICexgc(3y)62.43%
ROICexgc(5y)54.31%
ROCE(3y)8.23%
ROCE(5y)7.14%
ROICexcg growth 3Y21.61%
ROICexcg growth 5Y6.29%
ROICexc growth 3Y18.56%
ROICexc growth 5Y23.81%
OM growth 3Y5.86%
OM growth 5Y10.07%
PM growth 3Y11.28%
PM growth 5Y21.86%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.4% | ||
| Cap/Sales | 5.15% | ||
| Interest Coverage | 265.16 | ||
| Cash Conversion | 99.47% | ||
| Profit Quality | 161.41% | ||
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.99 | ||
| Altman-Z | 12.67 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)35.77%
Cap/Depr(5y)32.98%
Cap/Sales(3y)4.94%
Cap/Sales(5y)4.87%
Profit Quality(3y)178.16%
Profit Quality(5y)201.53%
High Growth Momentum
Growth
EPS 1Y (TTM)29.78%
EPS 3Y21.45%
EPS 5Y23.66%
EPS Q2Q%18.75%
EPS Next Y19.69%
EPS Next 2Y16.12%
EPS Next 3Y14.3%
EPS Next 5Y15.79%
Revenue 1Y (TTM)28.98%
Revenue growth 3Y17.04%
Revenue growth 5Y17.35%
Sales Q2Q%25.23%
Revenue Next Year18.35%
Revenue Next 2Y14.72%
Revenue Next 3Y13.23%
Revenue Next 5Y10.69%
EBIT growth 1Y35.09%
EBIT growth 3Y23.91%
EBIT growth 5Y29.17%
EBIT Next Year27.68%
EBIT Next 3Y16.95%
EBIT Next 5Y13.03%
FCF growth 1Y18.2%
FCF growth 3Y15.37%
FCF growth 5Y24.86%
OCF growth 1Y20.33%
OCF growth 3Y15.81%
OCF growth 5Y23.62%